Jio Platforms to benefit from Sebi rule cutting minimum IPO size
SEBI's revised listing rules are poised to benefit Reliance Industries' Jio Platforms, potentially streamlining its planned IPO in early 2026. The reduction in minimum IPO size for large companies and extended deadline for public shareholding requ...
By ET Bureau |
ANI
This will make it easier for investors to absorb the offering without pushing the stock price down, the report said.
Mumbai: The Securities and Exchange Board of India's updated listing rules are likely to benefit Reliance Industries' digital unit Jio Platforms, which is proposing an IPO in early 2026, according to a Citi research report.
One of the key changes approved by Sebi reduces the minimum IPO size for companies with a market cap of over $57 billion to 2.5% from 5%. It also extended the deadline for meeting the 25% minimum public shareholding requirement.
The new rule means Jio Platforms will only need to sell half as many shares in the IPO, as RIL seeks to reduce its 66% stake in the unit that runs Reliance Jio, India's biggest telco.
This will make it easier for investors to absorb the offering without pushing the stock price down, the report said.
According to Citi Research, Jio Platforms is valued at about $135 billion. The changes reduce concerns about the "hold-co discount", where a company's market value is lower than the combined value of its assets, Citi said. By allowing a lower initial float and more time to meet requirements, the market can value Jio's shares more fairly, it said.
One of the key changes approved by Sebi reduces the minimum IPO size for companies with a market cap of over $57 billion to 2.5% from 5%. It also extended the deadline for meeting the 25% minimum public shareholding requirement.
The new rule means Jio Platforms will only need to sell half as many shares in the IPO, as RIL seeks to reduce its 66% stake in the unit that runs Reliance Jio, India's biggest telco.
This will make it easier for investors to absorb the offering without pushing the stock price down, the report said.
According to Citi Research, Jio Platforms is valued at about $135 billion. The changes reduce concerns about the "hold-co discount", where a company's market value is lower than the combined value of its assets, Citi said. By allowing a lower initial float and more time to meet requirements, the market can value Jio's shares more fairly, it said.
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